UIGEA impacts Neteller 2007 results
Online money processing company Neteller has shown pre-tax losses of US$185.7 million for 2007 as compared to a profit of $107 million 2006.
Neteller is a popular payment processor for many people who play online bingo games, but the company was hit hard by a concerted attempt to initiate legal proceedings against it by the US Department of Justice for alleged financial irregularities relating to its US market activities.
A subsequent $136 million settlement with US Department of Justice authorities and related costs of $37 million are cited as being responsible for the bad performance. Neteller has subsequently abandoned the US market in favour of diversifying its interests in other, more friendly markets.
The company’s survival of its US situation is one of the success stories of the last year, though the final cost to Neteller has been heavy. Most UK online bingo halls and bingo online operators utilize Neteller’s services for their customers.
Neteller’s President and CEO, Ron Martin, commented: "2007 represented a milestone for the Group as we successfully resolved our issues with the US authorities, and energetically refocused the business to put into action our updated vision and mission. The renewal of the Group's businesses to leverage changed market opportunities has created energy and enthusiasm throughout the organisation. I am confident this will be reflected in our performance in 2008. I would like to thank all our employees for their contributions during a very challenging period in 2007 and I look forward to greater progress into 2008 and beyond."
